Kamal Haasan’s film “Thug Life” is set to hit theaters on June 5, 2025. Ahead of its release, the Tamil Nadu government has made a significant decision that’s expected to boost the film industry. The state government has officially reduced the local body entertainment tax by half, from 8% to 4%. This new tax rate took effect on May 7, 2025.
The move is seen as a major relief for the film industry, which has been struggling to cope with rising production costs and a decline in ticket sales. With the reduced tax rate, ticket prices are likely to decrease, making movies more affordable for audiences. As a result, cinema halls can expect to see an increase in footfall.
The Film Employees Federation of South India (FEFSI) has thanked Tamil Nadu Chief Minister MK Stalin for fulfilling the long-standing demand of the industry stakeholders. Kamal Haasan, the actor-producer, had earlier appealed to the state government to reduce the tax burden on Tamil films, citing the financial strain on the industry due to the pandemic and rising production costs. Haasan had highlighted the good relations between the DMK government and the film industry, urging the party to take necessary steps to support the industry.